Home : Blogs : Luisa Orellana, Escrow Officer, Camden Escrow : Escrow Officer Blog - Luisa Orellana

What is a 1031 Tax-Deferred Exchange?

I often get this questioned asked.

A 1031 Exchange is one of the oldest standing tax laws in the country. Tax-Deferred Exchanges were first introduced in 1921 allowing owners of investment property to defer the payment of capital gains associated with the sale of these properties. This procedure is outlined under the Internal Revenue Code Section 1031, and involves a series of rules and regulations that must be met in order to take full advantage of this great tax benefit.

A Qualified Intermediary, is a third party that helps to facilitate the exchange. Sometimes referred to as "facilitator," or "accommodator." You want to make sure you have a Qualified Intermediary, that has a complete understanding of everything that is involved in utilizing this section of the code and will walk you effortlessly through this process.

Posted by Luisa Orellana, Escrow Officer, Camden Escrow on 04/05/2007 03:12 PM

Comments (2)

taxes

This post has been included in California Information Los Angeles County, CA Information
Post is included in group: Escrow in SoCal

2 Comments on What is a 1031 Tax-Deferred Exchange?

APR

2007

Thanks for the information. I get asked all the time.

NOV

2007

Hi Luisa,

Great post! The 1031 exchange is certainly a great strategy to help investors defer their capital gain and depreciation recapture income tax liabilities by acquiring like-kind replacement property. It allows them to keep 100% of their equity (cash Position) working for them so they can trade up in value, improve their cash flow, and build their net worth.

Are you open to working with other Qualified Intermediaries? I would like to have Kim Englert, an officer in our Irvine Branch Office contact you to see how we can work together.

We look forward to working with you.

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?